Tuesday, February 15, 2011

Descending Triangle

The market started the correction today as expected. However, the trend average has not been tested and there is a Descending Triangle in place. Normally, I would label a Descending Triangle under the trendline as bearish. However, since this is taking place above the trend, the market might just be correcting enough to launch for another 5 waves to new highs again. So tomorrow we should get a better idea of what the market wants to do. I raised my stops on my shorts taken yesterday to break even just in case the we are on our way to 1340 and will cover at a profit if there is a bullish break out of the triangle during trading hours.

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